Strategic Management Model

Strategic management model refers to the pattern or mode of strategic management. According to the strategic management model, a number of steps are taken to achieve the objectives of a company. Different strategic management models are chosen by various companies according to their conveniences.

About Strategic Management Model
Strategic management model is also known as strategic planning model. A strategic planning model is selected for the purpose of formulating and implementing the strategic management plan of a particular organization.

Nevertheless, it has been proved that no strategic planning model is perfect. Every company designs its own strategic planning model frequently by choosing a model and transforming it as the company advances into formulating its strategic management plan procedures.

A number of strategic planning model options are available for the companies from which they can choose.

The Components of a Strategic Management Model
In the decade of 1970s, a large number of corporations followed a recognized strategic planning model, which is top down in nature. According to this model, strategic planning was a calculated procedure where the top management would design the strategy of the company and after that it was passed on downward in the company for application.

The steps involved in this strategic planning model were the following:

Mission

Objectives

Situation Analysis

Formulation of Strategies

Application

Control

The situation analysis is basically a blend of PEST Analysis (Political, Economic, Social and Technological Analysis) and SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats Analysis). Internal analysis is an important component of situation analysis, which studies the condition within the company taking into account the following factors:

Image of the company

Culture of the company

Key personnel

Structure of the company

Location on the experience curve

Availability of natural resources

Operational capability

Operational effectiveness

Market share

Brand consciousness

Exclusive agreements

Financial resources

Trade secrets and patents

A strategic planning model is applied in functional domains like the following:

Research and development

Marketing

Production

Procurement

Information systems

Human resources

Forms of Strategic Management Models

The different types of strategic management models can be categorized into the following types: